How to reduce fees on A$8K of spending in UK & Europe please?

Student I know will be studying a half year in UK. Plus will do Europe travel in breaks. What is the cheapest / best way to cover about A$8K of spending while there. About 2/3rds can be on plastic and 1/3rd need be cash.

For purchases that can be made by credit card, I am familiar that the free Coles Source MasterCard charges an International Transaction fee of 1.5%. Whereas Commonwealth Bank mortgage advantage (MAV) Gold MasterCard ($350/year annual fee) charges 2.5% International Transaction fee. The dual AMEX card on the MAV charges 3% partly hidden as a poorer exchange rate.

For cash, I know it is best not to use the money change kiosks at the Australian International Airports - they really sting bad from my one and only experience both in fees and a way below market exchange rate.

Thanks in advance for any responses.

Comments

  • +2

    For the credit card, a lot of people recommend the 28Degrees MasterCard (more info at http://www.28degreescard.com.au/index.html). It has no international transaction fees and no annual fees. Theres a large thread about this on whirlpool forums. I personally don't have much experience with this card.

    In terms of getting cash, for my upcoming trip to Japan, I found BankWest provided one of the best exchange rates for AUD -> Yen. They might be good for Pounds as well. Just a thought.

  • +2

    Use the 28degrees card to get cash from ATMs by first putting enough into the account so that you have a credit and therefore will not get charged cash advance interest. Of course, CC purchases will also debit from this at the end of the billing month so you will need to monitor your account and refill as necessary for any predicted cash withdrawals.

  • +1

    There's some fancy ANZ pre-paid Debit card that allows you to put in money in one lump sum, as say, British Pounds and they'll guarantee the same exchange rate on any leftover funds. I'm hungover so this is currently the best explanation I can give!

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